I was a beginner in the world of credit cards when I chose the Chase Freedom Unlimited® as my first credit card, and it hasn’t left my wallet since I received it. With a minimum of 1.5% cash back on all purchases and no annual fee, it was the perfect choice for my daily purchases. It’s served as an approachable introduction to credit card benefits and continues to help me build my credit score to this day. If you’re looking for a first credit card, here are some reasons to consider the Freedom Unlimited.
Chase Freedom Unlimited®
A good overall spending card that allows you to hold a balance on new purchases with a low introductory APR, pay no annual fee, and still earn at least 1.5% cashback on all purchases
- Generous welcome offer for a no annual fee card
- Unlimited 1.5% minimum earn rate for cash-back rewards
- No minimum redemption amount
- Introductory APR on purchases and balance transfers
- Foreign transaction fee
- Ongoing balance transfer fee is high
- Requires a companion card to transfer points to travel partners
- INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% – 29.24%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
What Makes the Chase Freedom Unlimited® a Good First Credit Card?
1. Above-Average Everyday Rewards Rate
The Chase Freedom Unlimited® earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year. The card earns rewards in the form of Chase Ultimate Rewards® points, but because these rewards can be redeemed for cash back at 1 cent per point, it’s effectively a cash-back card. While 1.5% back may not seem significant, this is a better base rate than most cards offer—especially those that are advertised to first-time cardholders.
Between my subscriptions, gas, entertainment and miscellaneous purchases, I average about $750 per month in expenses that don’t fall within one of the Freedom Unlimited’s bonus categories. At the card’s 1.5% base earning rate, that translates to $11.25 per month in cash-back earnings, or $135 per year.
2. Solid Bonus Rewards on Common Spending Categories
In addition to the baseline 1.5% on all purchases, the Chase Freedom Unlimited earns elevated rates in common categories, including:
- 3% on dining (including takeout and eligible delivery)
- 3% on drugstore purchases
- 5% on travel booked through Chase Travel
For me, 3% on dining is my absolute favorite perk. These days, when I go out to eat with a group of friends, I often volunteer to pick up the check and have them Venmo me later because I want to earn rewards.
I don’t go out of my way to make purchases at the pharmacy, but it’s nice knowing I can receive more than the normal 1.5% cash back when I do make the occasional visit.
3. Generous Introductory APR Offer
As a beginner to the world of credit cards, I was initially most excited about the welcome offer: an additional 1.5% cash back on up to $20,000 spent in the first year, worth up to $300 cash back. However, I soon realized that the 0% Intro APR on Purchases for 15 months, 20.49% - 29.24% Variable APR thereafter would serve me best as a new credit card user.
Because I was inexperienced with credit cards, I often carried a balance from month to month. Even worse, I’ll admit that I maxed out my credit card limit at one point. If I didn’t have the intro APR, I would have accrued interest charges at the card’s normal variable APR.
Thankfully, I paid attention to my intro APR window and paid off my entire balance by the time my intro period was over. To this day, I try to pay off my balance in full every month so I don’t have to pay a dime in interest fees.
From my experience, the intro APR period gives new credit card users time to understand how monthly payments work so they can build positive habits and excellent credit in the long run.
Drawbacks of Chase Freedom Unlimited®
1. It’s Not Designed for Building Credit From Scratch
To qualify for the Freedom Unlimited, you need at least a good credit score. I was able to get approved for it as my first credit card because I started building my credit history in college when I got a car loan with the help of a co-signer. By the time I graduated, I had built enough credit history to meet the Chase Freedom Unlimited’s eligibility requirements.
If you haven’t started building your credit, you might want to consider applying for the Chase Freedom Rise℠ instead. Although it doesn’t have any bonus categories, it offers a similar 1.5% base earning rate and is designed for those who are new to credit. Plus, Chase automatically reviews Freedom Rise accounts for upgrades to the Chase Freedom Unlimited after 12 months of on-time payments.
2. Other Cards Offer Higher Bonus Categories
While the simplicity of the Chase Freedom Unlimited is nice, it might not be the right fit if you enjoy strategizing to maximize your rewards earnings. Other credit cards for beginners offer higher earning rates on their top bonus categories.
For students, the Discover it® Student Cash Back earns 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations and more, up to the quarterly maximum once activated. Plus, automatically earn unlimited 1% cash back on all other purchases. The card also offers a unique welcome bonus: Unlimited Cashback Match™ - Discover will match all the cash back you’ve earned at the end of your first year. There's no minimum spending or maximum rewards.
In another example, the Citi Custom Cash® Card earns 5% cash back on purchases in a top eligible spend category up to the first $500 spent each billing cycle, 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025 and 1% cash back on all other purchases. A wide variety of categories are eligible for the 5% earnings rate and those with fair credit are eligible to apply. Ultimately, you’ll have to determine your specific credit situation and goals to determine which card is right for you.
Find the Best First Credit Cards To Build Credit In 2024
Bottom Line
The Chase Freedom Unlimited® has solid benefits for beginners with no major drawbacks.
I didn’t need my first credit card to get me free five-star hotel rooms or first-class flights like you might see in ads for more premium cards. Instead, I wanted a tool to help me improve my financial management skills and introduce me to the exciting world of rewards cards. I’m happy I chose the Freedom Unlimited.
